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  • From: Clansgian AT wmconnect.com
  • To: homestead AT lists.ibiblio.org
  • Subject: Re: [Homestead] gold back currency anyone?
  • Date: Sun, 7 Dec 2008 22:16:14 EST



> >Your answer to the one point the blogger made below warrants this further
> question. So, if a person does believe that in five, ten years, or less,
> that free markets somewhere in the navigable world will be operating, then
> having 'some' gold is not a terrible idea ?

Bob, things got bad in 1929 and a lot of people followed the old Gold
routine. In 1933 they were required by law to turn over all their gold to
the fed
and receive (about) $20/oz in paper money for it. Then the government
declared
that gold was worth $35/oz and there you were holding all that paper money
now
worth around half what it was before.

Someone else bought up, lets say, beans, steel, rum, anything instead of
gold. In 1933 those things (because of the devaluation of the currency in
the
gold confiscation) were now worth roughly double what they had been
previously
worth.

What? Was holding gold a good idea or a terrible idea?

Even if you disobeyed the law and kept your private stash of gold, you were
prohibite from ever trafficking in it. Only the Fed was allowed to buy your
gold.

This not an isolated instance, it has happened repeatedly through history
even in ancient times. If we go through really bad times, as we well may, I
very
seriously dobut you are going to be able to waltz into a bank and cash in any
of your gold. Neither is anyone else so its barter value diminishes greatly.

All the long list of things you hear about gold being portable, ten thousand
in your pocket and such, makes gold have one more characteristic that has
been
brought into play time and time and time again in history .... it is very
easy to take it away from you.


James




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